Shares of Wix.com (WIX) surged in trading after the company reported strong Q3 results and raised its FY24 outlook. The Israeli software company’s adjusted earnings increased by 36.4% to $1.50 per share, surpassing consensus estimates of $1.44 per share.
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Furthermore, the company’s revenues increased by 13% year-over-year to $444.7 million in the third quarter. This was above Street estimates of $444.3 million. Additionally, WIX’s bookings soared by 16% year-over-year to $449.8 million in the third quarter.
WIX’s Management Comments on the Q3 Results
Lior Shemesh, CFO at Wix, commented, “Bookings growth accelerated to 16% y/y in Q3, driven by Studio momentum, ramping benefits from our AI product suite, robust commerce activity, and strong business fundamentals.”
The company’s management added that, considering this impressive performance, it was raising its FY24 guidance.
WIX Raises FY24 Outlook
Looking ahead, the company expects its revenues in the fourth quarter to be in the range of $457 to $464 million. Furthermore, in FY24, Wix.com raised its revenue outlook and now projects its revenues to be between $1.75 billion and $1.76 billion, compared to its prior forecast in the range of $1.74 billion to $1.76 billion. For reference, analysts expect the company to report revenues of $457.1 million and $1.76 billion in the fourth quarter and FY24, respectively.
In addition, WIX raised its FY24 bookings outlook to between $1.82 and $1.83 billion, up from its prior guidance in the range of $1.8 billion to $1.82 billion. The company defines bookings as “adding the change in deferred revenues and the change in unbilled contractual obligations for a particular period to revenues for the same period.”
Is WIX a Good Stock to Buy?
Analysts remain bullish about WIX stock, with a Strong Buy consensus rating based on seven Buys and two Holds. Over the past year, WIX has surged by more than 80%, and the average WIX price target of $204.56 implies an upside potential of 11.2% from current levels. These analyst ratings are likely to change following WIX’s results today.
